Significant Equity Method Investees

3 Months Ended

Mar. 31, 2020

Significant Equity Method Investees

Significant Equity Method Investees

4. Significant Equity Method Investees

We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. (“PTL”), a leading provider of transportation and supply chain services. Penske Transportation Solutions (“PTS”) is the universal brand name for PTL’s various business lines. Our investment in PTS is accounted for using the equity method of accounting. PTS equity earnings represent a significant portion of our consolidated pre-tax income. We recorded $13.6 million and $25.8 million during the three months ended March 31, 2020 and 2019, respectively, on our statements of income under the caption “Equity in earnings of affiliates” related to earnings from PTS investment.

Unaudited summarized income statement information for PTS for the three months ended March 31, 2020 and 2019 is as follows:

	Three Months Ended March 31,
	2020		2019
Revenues	$	2,194	$	2,135
Gross profit		405		420
Income from continuing operations		47		89
Net income		47		89